Which of the Following Is Not a Characteristic of a Perfectly

question 135

Multiple Choice

Which of the following is not a characteristic of a perfectly competitive market?

• A) Zero economic profit in the long run.
• B) Perfect information.
• C) Homogeneous products.
• D) High barriers.

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Definitions:

Yield

The income return on an investment, expressed as a percentage of the investment’s cost or current market value.

Duration

A measure of the sensitivity of the price of a bond or other debt instrument to a change in interest rates, often noted in years.

Yield Spread

The difference between the yields of two bonds with differing credit qualities, maturities, or issuers.

Historical Levels

Refers to the past recorded levels or values of a financial metric, interest rate, stock price, or any other economic indicator.